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Steve Towers
                                        steve.towers@bpgroup.org
                                www.bpgroup.org | www.towersassociates.com
                         OUTSIDE-IN - THE SECRET OF THE 21ST
                           CENTURIES LEADING COMPANIES
                                                           www.bpgroup.org




                                                                                            What is the Secret and
                                                                                            Who are the companies?
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
www.stevetowers.com
                                                            www.bpgroup.org
                                                                  www.bp2010.com
                                                                  www.towersassociates.com
                                                                  www.oibpm.com




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
www.stevetowers.com
                                                                                                  www.bp2010.com
                          Outside-In:                                                       www.towersassociates.com
                          The Secret of the leading 21st Century Companies
                                               •     Outside-In The Secret – what is it?
                                               •     Who Are the Leading Companies?
                                               •     What is it that they are doing?
                                               •     How are they doing it?
                                               •     Can we do it also?
                                               •     Where should we start?
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
Outside-In The Secret – what is it?




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
Who Are the Leading Companies?




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
What is it that they are doing?
          First let‟s review quickly what they don‟t do




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
We have inherited an industrial legacy
 What shape are our organisations in?




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
The Pyramid




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
Our organisations all look the same...


                                                                                     CEO
                                          Marketing                  Sales            Customer      Operations   Finance
                                                                                       Service




AW 2011 BP Group Conference - July 2011           © BPGroup – All Rights Reserved www.bpgroup.org
Processes wend and meander their way around these
 rigid structures...

                                                                                     CEO
                                          Marketing                  Sales            Customer      Operations   Finance
                                                                                       Service




AW 2011 BP Group Conference - July 2011           © BPGroup – All Rights Reserved www.bpgroup.org
And hey ho – we nearly forgot the customer!
 Now where do they go?

                                                                                     CEO
                                          Marketing                  Sales            Customer      Operations   Finance
                                                                                       Service




AW 2011 BP Group Conference - July 2011           © BPGroup – All Rights Reserved www.bpgroup.org
What‟s
      Missing?




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
What they are doing and
  What they know and act upon is different

                 The reason we are doing work is to deliver
                  product and service to the customer (through that we create the profits)
                 The rules of work have changed forever as a consequence of the
                  „always on world‟
                 It is NOT about what the customer wants
                 The imperative is to reconfigure everything we do around the needs of
                  the customer – simply put not everything should look like a manufactory
                 The Customer Experience is the process
                 And it is all about what causes the work we do, rather than the effect
                 It is essential to manage Customer Expectations



AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
The Always on World – It has all happened in the last 13 years!
Mapping the Growth of the Internet          st
 The Always on World of the 21 century - 1998




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
The Always on World of the 21st century
Now it is anytime, any place anywhere




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
It is NOT about what the customer wants

                                                                            Over 40 years of launching new
                                                                            products and services, we have
                                                                            striven to listen very carefully to
                                                                            what our customers think they
                                                                            want and then set about giving
                                                                            them something that is often
                                                                            very different, but always a little
                                                                            better.
                                                                            If your business proposition is
                                                                            innovative, your ultimate goal
                                                                            has to be,“The customer always
                                                                            thinks that we are right.”
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
The needs of the Customer
    have changed forever




                                                                                            Inspiration:
                                                                                            Udayan Banerjee
                                                                                            CTO,
                                                                                            NIIT Technology (India)
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
It‟s a Copernican Moment




                    Copernicus - 19 February 1473 – 24 May 1543
                                                                                                He died 467 years ago
AW 2011 BP Group Conference - July 2011       © BPGroup – All Rights Reserved www.bpgroup.org
How are they doing it?




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
Understand & Develop Successful Customer Outcomes
                                      CRAFTING THE
                                      SUCCESSFUL CUSTOMER OUTCOME
                                      Understanding the real Customer Need                                        TOOLS




                                 Layer 1:                                                                         Layer 4:
                                 Who is the                                                                       How does
                                 Customer?                                                                        what
                                                                                                                  We do impact
                                                                                                                  Customer
                                 Layer 2:
                                                                                                                  Success?
                                 What is the
                                 Customers
                                 current                                                                   Layer 5:
                                 Expectation?                                                              The Successful
                                                                                                           Customer
                                                                                                           Outcome – what
                                 Layer 3: What is the                      The One liner                   does the
                                 process the customer                      SCO:                            customer really
                                 thinks they are involved                  One line                        need from us?
                                 with?                                     statement that
                                                                           explains the
                                                                           actual SCO
                              The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
                            process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
                            inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
AW 2011 BP Group Conference - July 2011         © BPGroup – All Rights Reserved www.bpgroup.org
Action the Causes of Work

                                                                The Causes of Work
                                                                         MOT                Moments of Truth




                                                                      Break Points             BP

                                                                                                               BR
                                                                                            Business Rules
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
MOT
    MOT                                                                        MOT                MOT   MOT
                                  MOT                                  MOT                  MOT




    Any interaction with the CUSTOMER
                    is a
             MOMENT OF TRUTH


AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
MOT
    MOT                                                                        MOT                MOT   MOT
                                  MOT                                  MOT                  MOT




                                        And every
                                      MOMENT OF TRUTH
   Ripples and reverberates through the organisation



AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
MOT
    MOT                                                                         MOT                MOT   MOT
                                  MOT                                   MOT                  MOT




                                              And
                                          MOMENTS OF TRUTH
                Create complexity, cost, wastefulness and failure
AW 2011 BP Group Conference - July 2011    © BPGroup – All Rights Reserved www.bpgroup.org
MOT
                       THE CAUSE OF WORK                                        MOT
                                                                                                   MOT   MOT
                                                                                                               MOT

                                                                         MOT                 MOT
                                     MOT




                                          THE EFFECT
AW 2011 BP Group Conference - July 2011    © BPGroup – All Rights Reserved www.bpgroup.org
Can we do it also?                                                       Yes we can!! It’s child play….




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
However…. Where should we start?




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
Where should we start?




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
You gotta start where you are! Once commitment is made the transition is rapid




                                                                    Functional
                                                            Trans Silo                           6-12
                                                                                                 months
                                                     Enterprise Wide Execution


                     “The Customer Experience is the Process”

               Examples include: Gilead, Allied Pickfords, Tesco, State Farm, Emirates, China Mobile
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
Integrating at the enterprise level?
     Process - the Beginning and                                         The Successful Customer
     the End                                                             Outcome

     Where does the process start and finish?                            What is it and how can it reshape our processes
     What IT systems support the process?                                and enterprise?
     Are our processes and systems aligned to
     achieve the Successful Customer Outcome?


     Process Points of Failure                                           What business are you (really)
     Moments of Truth | Breakpoints | Rules                              in?

     What and Where are they?                                            Can you deliver a compelling 21st century
                                                                         Enterprise?
                                      Take-aways for
                                      you to think on


AW 2011 BP Group Conference - July 2011    © BPGroup – All Rights Reserved www.bpgroup.org
The Virgin Galactic Customer Experience
  A unified Enterprise
  offering

                                                                                                                                                       I deserve
                                                                                                       Motivation
                                                                                                                                                      something
                                                                                                                                                         special
                               Blog       The                                 Evangelise                                    Inspire
                                          Club


                              Video        The                                                                                                              VG                    Sign-Up
                                          Launch                    Reflect                                                             Inspire            Online

                                                                                                                                                                                 VG
                                          Space                                                                                                            VG                 Astronauts
                                           Suit                                                                                                           Online
                                          Fitting                             Experience                                    Explore
                                                                                                                                                                           Live
                                                                                                                                                                          Feed
                                                                                                       Handhold
                                                                                                                                                   Book
                                               Training
                                                                                                                                                                       FAQs

                                                          Medical             Optimised                   Preference             Online
                                                           Exam                Touch                    & Personalization       Welcome                      VG Club


                                                                                                                All Level             All Level   Share
                                                                                           All Level
                                                                                            Access               Access                Access

AW 2011 BP Group Conference - July 2011     © BPGroup – All Rights Reserved www.bpgroup.org
The Customer is the Centre



                                 Live the life of your customer.
                                      Become a customer.
                               Do business with your company
                                       from the outside.
                                          Scott Struminger, FedEx's SVP of IT


AW 2011 BP Group Conference - July 2011    © BPGroup – All Rights Reserved www.bpgroup.org
Questions?




AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org
April 2011…
                                                                                       The upcoming transformation of our
                                                                                       society presents one of the greatest
                                                                                       business opportunities of the next
                                                                                       100 years.

                                                                                       This will require patience as well as
                                                                                       perseverance; to anticipate what‟s
                                                                                       next and plan for that situation as
                                                                                       well as taking advantage of what‟s
                                                                                       immediately before you.
                Thank you.
           Now it shouldn’t seem                                                       Our efforts in this field are part of
          like magic anymore ;-)
                                                                                       our strategy for this future.
                                                                                       What‟s yours?

AW 2011 BP Group Conference - July 2011   © BPGroup – All RightsSource: Fanzine
                                                                 Reserved www.bpgroup.org
Steve Towers
                                        steve.towers@bpgroup.org
                                www.bpgroup.org | www.towersassociates.com
                         OUTSIDE-IN - THE SECRET OF THE 21ST
                           CENTURIES LEADING COMPANIES



                                                                                            What is the Secret and
                                                                                            Who are the companies?
AW 2011 BP Group Conference - July 2011   © BPGroup – All Rights Reserved www.bpgroup.org

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Outside in The Secret_Architects_World_keynote_2011

  • 1. Steve Towers steve.towers@bpgroup.org www.bpgroup.org | www.towersassociates.com OUTSIDE-IN - THE SECRET OF THE 21ST CENTURIES LEADING COMPANIES www.bpgroup.org What is the Secret and Who are the companies? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 2. www.stevetowers.com www.bpgroup.org www.bp2010.com www.towersassociates.com www.oibpm.com AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 3. www.stevetowers.com www.bp2010.com Outside-In: www.towersassociates.com The Secret of the leading 21st Century Companies • Outside-In The Secret – what is it? • Who Are the Leading Companies? • What is it that they are doing? • How are they doing it? • Can we do it also? • Where should we start? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 4. Outside-In The Secret – what is it? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 5. Who Are the Leading Companies? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 6. What is it that they are doing? First let‟s review quickly what they don‟t do AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 7. We have inherited an industrial legacy What shape are our organisations in? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 8. The Pyramid AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 9. Our organisations all look the same... CEO Marketing Sales Customer Operations Finance Service AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 10. Processes wend and meander their way around these rigid structures... CEO Marketing Sales Customer Operations Finance Service AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 11. And hey ho – we nearly forgot the customer! Now where do they go? CEO Marketing Sales Customer Operations Finance Service AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 12. What‟s Missing? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 13. What they are doing and What they know and act upon is different  The reason we are doing work is to deliver product and service to the customer (through that we create the profits)  The rules of work have changed forever as a consequence of the „always on world‟  It is NOT about what the customer wants  The imperative is to reconfigure everything we do around the needs of the customer – simply put not everything should look like a manufactory  The Customer Experience is the process  And it is all about what causes the work we do, rather than the effect  It is essential to manage Customer Expectations AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 14. The Always on World – It has all happened in the last 13 years! Mapping the Growth of the Internet st The Always on World of the 21 century - 1998 AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 15. The Always on World of the 21st century Now it is anytime, any place anywhere AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 16. AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 17. It is NOT about what the customer wants Over 40 years of launching new products and services, we have striven to listen very carefully to what our customers think they want and then set about giving them something that is often very different, but always a little better. If your business proposition is innovative, your ultimate goal has to be,“The customer always thinks that we are right.” AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 18. The needs of the Customer have changed forever Inspiration: Udayan Banerjee CTO, NIIT Technology (India) AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 19. It‟s a Copernican Moment Copernicus - 19 February 1473 – 24 May 1543 He died 467 years ago AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 20. How are they doing it? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 21. Understand & Develop Successful Customer Outcomes CRAFTING THE SUCCESSFUL CUSTOMER OUTCOME Understanding the real Customer Need TOOLS Layer 1: Layer 4: Who is the How does Customer? what We do impact Customer Layer 2: Success? What is the Customers current Layer 5: Expectation? The Successful Customer Outcome – what Layer 3: What is the The One liner does the process the customer SCO: customer really thinks they are involved One line need from us? with? statement that explains the actual SCO The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy inside-out thinking to create an actionable strategic and operational objective for the entire organisation. AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 22. Action the Causes of Work The Causes of Work MOT Moments of Truth Break Points BP BR Business Rules AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 23. MOT MOT MOT MOT MOT MOT MOT MOT Any interaction with the CUSTOMER is a MOMENT OF TRUTH AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 24. MOT MOT MOT MOT MOT MOT MOT MOT And every MOMENT OF TRUTH Ripples and reverberates through the organisation AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 25. MOT MOT MOT MOT MOT MOT MOT MOT And MOMENTS OF TRUTH Create complexity, cost, wastefulness and failure AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 26. MOT THE CAUSE OF WORK MOT MOT MOT MOT MOT MOT MOT THE EFFECT AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 27. Can we do it also? Yes we can!! It’s child play…. AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 28. However…. Where should we start? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 29. Where should we start? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 30. You gotta start where you are! Once commitment is made the transition is rapid Functional Trans Silo 6-12 months Enterprise Wide Execution “The Customer Experience is the Process” Examples include: Gilead, Allied Pickfords, Tesco, State Farm, Emirates, China Mobile AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 31. AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 32. Integrating at the enterprise level? Process - the Beginning and The Successful Customer the End Outcome Where does the process start and finish? What is it and how can it reshape our processes What IT systems support the process? and enterprise? Are our processes and systems aligned to achieve the Successful Customer Outcome? Process Points of Failure What business are you (really) Moments of Truth | Breakpoints | Rules in? What and Where are they? Can you deliver a compelling 21st century Enterprise? Take-aways for you to think on AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 33. The Virgin Galactic Customer Experience A unified Enterprise offering I deserve Motivation something special Blog The Evangelise Inspire Club Video The VG Sign-Up Launch Reflect Inspire Online VG Space VG Astronauts Suit Online Fitting Experience Explore Live Feed Handhold Book Training FAQs Medical Optimised Preference Online Exam Touch & Personalization Welcome VG Club All Level All Level Share All Level Access Access Access AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 34. The Customer is the Centre Live the life of your customer. Become a customer. Do business with your company from the outside. Scott Struminger, FedEx's SVP of IT AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 35. Questions? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org
  • 36. April 2011… The upcoming transformation of our society presents one of the greatest business opportunities of the next 100 years. This will require patience as well as perseverance; to anticipate what‟s next and plan for that situation as well as taking advantage of what‟s immediately before you. Thank you. Now it shouldn’t seem Our efforts in this field are part of like magic anymore ;-) our strategy for this future. What‟s yours? AW 2011 BP Group Conference - July 2011 © BPGroup – All RightsSource: Fanzine Reserved www.bpgroup.org
  • 37. Steve Towers steve.towers@bpgroup.org www.bpgroup.org | www.towersassociates.com OUTSIDE-IN - THE SECRET OF THE 21ST CENTURIES LEADING COMPANIES What is the Secret and Who are the companies? AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org